Most families might be forgiven for thinking a well-executed will is enough to ensure their fortune is handed over fairly to their heirs.
But experts warn this is increasingly not the case as America's growing number of financial accounts risks invalidating their estate plans.
For example, an individual may have a will that states their wealth should be divided between their children. But a long forgotten about form on a life insurance policy could list an ex-spouse as a beneficiary - sparking nasty legal battles.
Florida financial planner Paxton Driscoll told DailyMail.com: 'The most important thing for older people to make sure is that their affairs are all aligned.
'Lawyers love to charge money wherever they can so families have to be crystal clear on who the beneficiaries of their estates are.'
Florida financial planner Paxton Driscoll told DailyMail.com that he regularly saw clients who didn't realize they had an account with an ex-spouse listed as a beneficiary
Adults expecting to inherit in the next decade estimate they will receive over $700,000 on average, a report by life insurer New York Life found
America is about to embark on a 'great wealth transfer,' experts say, with the average adult expecting to receive over $700,000 in the next decade, according to New York Life.
But financial planners warn inheritance planning is increasingly complicated by the sheer number of accounts that Americans now own that have beneficiary forms attached.
These include life insurance policies, retirement pots and even some bank and brokerage accounts.
If these accounts have the wrong beneficiary listed, their whole value can be transferred to that person - no matter what your will or other estate plans claim.
Driscoll added: 'I constantly have people come to me and find out that their ex-wife is actually listed as a beneficiary on some kind of financial account.
'Most assume the bank will let them know if something is wrong but it's up to you to keep on top of these things.'
Dr James Rocconi's family is among those to have suffered an ugly court battle as a result of an outdated beneficiary form.
Dr Rocconi changed all of his estate plans after his third wife left him and handwrote an alteration to his life insurance policy which was faxed over to the insurer.
The note changed the beneficiary on his policy from his former partner to his children.
But after he died in 2017, his family discovered the insurer had not accepted the faxed change because it had not been signed by the deceased.
It sparked a six-year legal battle between the children and his former spouse over the payout.
His son Dr Tony Rocconi told the Wall Street Journal: 'He told me what he wanted. I wasn’t going to let her win. I just wanted him vindicated.'
The children eventually got their share of the life insurance money and donated it to his father's church, the WSJ reported.
They won in court because their case was helped by the fact there were voice recordings stating the father's wishes. A recording heard the deceased state: 'I've got to get her off,' according to the WSJ.
The Arkansas Supreme Court said he had 'substantially complied' with the insurer's policy change requirements.
However, many families are not so lucky. And the issue is complicated by different beneficiary rules for different accounts.
For example, laws around 401(K)s mean the spouse of a deceased owner is automatically entitled to the funds unless they formally waive it. Any waiver must be notarized.
But with Individual Retirement Accounts (IRA), an owner can name somebody other than their spouse as a beneficiary without securing a waiver.
Meanwhile the beneficiary on a life insurance policy depends on the insurer's own rules.
If the policy was purchased through an employer, the employer-plan documents also dictate the rules of the payout.
Driscoll recommends families consider putting their money in a trust when trying to organize their affairs before they die. He says trusts 'go one step further' than a will and offers greater legal protection.
The biggest difference between a will and a living trust is that the former comes into action after death and must go through the probate process.
However a living trust comes into effect when the owner is still alive and does not have to undergo probate.
How to avoid a shock tax bill on your inheritance
Gifting while living
IRS rules allow parents to gift up to $17,000 per year to an unlimited number of individuals - with no federal gift or estate tax consequences.
And spouses can also give the same amount - doubling the amount a couple can pass on.
This is especially helpful if an individual is on the border of reaching the lifetime gift tax exemption - which is $12.92 million per person, or $25.84 million for a couple. Any money beyond that is taxed at a rate of 40 percent.
The exemption allowance was increased substantially from $5.49 million per person in 2017, thanks to the Tax Cuts and Jobs Act (TCJA).However, this is only a temporary act which is only in place to 2025.
Gift your home - while continuing to live in it
Setting up a life estate means you can gift your property with the understanding that you will remain a 'life tenant' - meaning you can live there until death.
You will also remain responsible for paying mortgage obligations, property taxes and homeowner's insurance in the meantime.
Doing this effectively streamlines the inheritance and avoids probate - the legal process of proving a will.
Set up a Trust
Leaving your money in a will can again trigger a costly and time-consuming probate process.
What's more, putting your money into a trust can make your heirs eligible for a 'step up' basis on properties.
A step-up basis adjusts the value of inherited assets to the current fair market value - helping to reduce Capital Gains Tax in the future.
Capital Gains Tax is a levy placed on the amount your asset has appreciated in value over time.
For example, if a parent bought a property for $20,000 and it grew in value to $500,000 today, when they die the property will have a 'step up basis' reflecting its actual worth.
If the heir then sells the property for $700,000 - they will only be taxed on the $200,000 appreciation. Without the 'step up' basis rules, they would have been taxed on the $680,000 appreciation since it was first bought by the parents.
